Fewer, Nicer, Things and Experiences

Consumer tastes may be moving away from high consumption, and toward more mindful purchasing

The Avery Dennison Market Research team has recently completed work to outline what it calls its “Megatrends for 2020.” These four trends aim to help us understand consumer attitudes at their highest levels; attitudes that drive behaviors and shopping/buying activity. Starting with this issue of AD Connect, we’ll dedicate our Insights column to this work— one Megatrend per issue.

These insights have been gleaned from a wide range of reliable and reputable sources. Where appropriate, we cite those sources, but the broader narrative—the descriptions and implications of the four Megatrends—is our team’s creation. Our first 2020 Megatrend: Fewer, nicer, things and experiences

Malcolm Forbes is credited with the catchphrase “He who dies with the most toys wins.” Forbes’ quote represents the spirit of conspicuous consumption that closed out the 20th century. But as we enter the third decade of the 2000s, we may be seeing a shift in attitudes.

That shift is our first Megatrend: consumers starting to invest in fewer, nicer, things and experiences. Moving away from the trend of excessive and unsustainable consumption, consumers are increasingly taking a long, hard look at their habits, and taking a more mindful approach to spending. They’re desiring things and experiences that feel more unique and authentic to them.

This Megatrend is characterized by a range of desires and attitudes.

Quality and durability

Consumers are becoming less interested in accumulating volumes of “stuff.” Instead they want to invest in premium/luxury items that offer high functionality, high quality, and high durability. For instance, rather than a cluttered closet full of inexpensive, trendy clothes that the consumer discards after a handful of wears, it’s a narrower wardrobe of carefully-curated, well-made, timeless fashions that she owns for a decade.

A 2016 article in the Atlantic, “The Power of Buying Less by Buying Better,” profiled small companies working to turn on younger consumers to clothing built to last. The article cites data from the American Apparel and Footwear Association pointing out that the number of garments each American buys per year has dropped, while the total clothing spend has increased.

Purpose-driven

As activism grows, consumers want to support causes and brands they believe in. They want to join together with others around a shared cause. Perhaps no “purpose” is more talked about than environmental sustainability. And while our industry has wrestled with the cost implications of using more sustainable materials, there’s growing evidence that we’ve arrived at a tipping point. According to a recent survey by PBS and Marist, two-thirds of Americans are now willing to pay more for everyday items made from environmentally-sustainable materials. Homes as hubs

As remote work and gig economy trends grow, homes are emerging as multifunctional hubs: Centers not only for family life, but for work, shopping, entertainment, and more. Such functionality offers reduction or elimination of things such as lengthy (and carbon-emitting) commutes and routine errands.

An interest in purposeful travel and leisure activities

When consumers do leave their hub-homes, they’re increasingly seeking out activities that offer greater personal satisfaction. They seem to want brands and companies to make life more fun, experiential and engaging. A 2014 Harris Poll noted that more than threequarters of millennial shoppers would rather spend money on a desirable experience than a desirable thing.

According to Mintel’s “Consumer Trends 2030,” this longing for experience may go deeper than just things that are purchased, to a re-engagement in communities driven by nostalgia and a renewed sense of heritage. There’s even a movement afoot aimed at taking long and meaningful breaks from the digital realm, as people shut off their phones and log off social media accounts to get away from the noise of modern life. Google “social media detox,” and you’ll find plenty to support the notion of stepping away for a while.

What does this mean for brands and converters?

The Megatrend may offer new opportunities for established brands, along with possibilities for those willing to alter their course slightly to better align with consumer attitudes.

In short, opportunities seem to abound for those brands with solid and broad sustainability credentials; those that prioritize people and the planet over profits. Brands that offer craftsmanship and durability should thrive. The luxury goods market should grow, as consumers seek out nicer, longer-lasting goods. The second-hand economy should benefit as well, as consumers search for affordable, high quality used products. And brands that can differentiate by creating powerful emotional connections, and by giving consumers a greater sense of control over their homes and lives, should thrive.

Converters can be on the lookout for ways to support brands that pursue these opportunities. Avery Dennison offers wide-ranging solutions that can help you do just that. Our ClearIntent™ Portfolio, for instance, includes hundreds of label products that can help brands stake an authentic claim to sustainability. Solutions such as our wine and spirits paper offerings can differentiate brands with a luxury look and feel. Our Intelligent Label solutions are helping brands leverage RFID technology in creative ways to tell their story and connect with customers. The list goes on.

As this Megatrend continues to grow—and as brands continue to respond to it—you can be confident that Avery Dennison will provide the materials you need to capitalize. AD Connect Q1 | 20